Georgian Institute of Public Affairs University of TROY

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Effective Ways of Improving Georgian State and Consolidated Budget Expenditure Challenges

by Paata Medzvelia

The government's role, in the aspect of country development, has always been the most significant and observable subject. However, the size of the government involvement, ratio consisting sum of assigned budget expenditures alongside with non-financial assets on Gross Domestic Product (GDP), has always been in close scrutiny. Moreover, it is crucial to keep described ratio minor or has a tendency of decreasing, as reduced government involvement helps countries economy to grow naturally by encouraging the privet sector. Thus, current study gives possibility of assessing and analyzing mentioned trend, from 2002 to 2017 years scale, and pays vital attention on expenditure components and tendencies. Furthermore, the study identifies specific econometric model in which each budget expenditure parameters and non-financial assets effect on the country's GDP is defined individually. Thus, efficiently helping for future budgetary planning. Significantly, the research implies much needed long term budgetary strategic planning components and provides several recommendations on that matter. Furthermore, it is very important that the study identifies and leaves possibilities for future research, as to more fundamentally and individually being analyzed not only positively affecting budgetary expenditure classificatory parameters, on economic growth, but those with negative effects.

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